Global data lift stock futures as ISM awaits

Dell rises in preopen trade after Goldman Sachs upgrade

NEW YORK (MarketWatch) — Stock-index futures pushed higher Monday, helped by a bit of good news in manufacturing surveys out of the U.S., China and Europe, which came ahead of the important Institute of Supply Management’s U.S. manufacturing index.

“I think the economic news out of China and apparent stabilization in the manufacturing sector in Europe is helping the risk trade,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “The dollar is lower and that means higher commodity prices and a higher opening for Wall Street.”

Week Ahead: Cliff talks continue

In Europe, the final reading of the Markit purchasing managers’ index came in at 46.2, showing contraction for a 16th straight month, but rising from 45.4 in October.

That data come ahead of a big day for U.S. economic news.

The Institute of Supply Management’s manufacturing index is due at 10 a.m. Eastern time. Economists polled by MarketWatch expect an unchanged reading for November at 51.7%. Readings of more than 50% indicate growth. Read ISM, jobs data in eye of the storm.

“We’re probably looking at a higher opening [for Wall Street] unless the ISM should contract under 50, but I don’t think that will be the case,” said Cardillo.

Markit’s U.S. manufacturing purchasing managers' index hit a six-month high of 52.8 in November. The gauge is similar to the ISM, but hasn’t got much of a following yet as it is a relatively new survey.

At 10 a.m. Eastern, construction spending will be released, and economists polled by MarketWatch expect a 0.5% expansion in October as the recovery in the housing market carries on.

Also out Monday, auto makers will be releasing U.S. sales data for November. For the industry as a whole, sales are expected to pick up to a 14.7 million annualized pace.

Reuters

U.S. Treasury Secretary Tim Geithner

As for the fiscal cliff, on Sunday, U.S. Treasury Secretary Timothy Geithner and House Speaker John Boehner, R-Ohio, dug in over respective positions. Geithner predicted Republicans will have to accept higher taxes on the wealthy to ensure a budget deal, while Boehner said: “We are nowhere.” Read: Geithner predicts Republicans will accept tax hike

Steen Jakobsen, chief economist at Saxo Bank, expects the S&P 500 index
SPX, -0.23%
to finish the year down about 2% from where it is now—the index is up over 13% for the year so far.

“It is impossible to trade this, and this is the holiday season,” said Jakobsen, regarding the fiscal-cliff negotiations. He sees volumes steadily diminishing as the end of the year draws near.

“The market is complacently very satisfied with the year, which means there will be little activity,” he said.

Jakobsen cautioned against getting too positive on that China data, as much of the growth is driven by government investment. “What the market is looking for right now across the globe is a handover from the public to the private sector. The only growth we do see in PMIs remains that of government spending,” he said.

In another positive for the euro, German Chancellor Angela Merkel told a German newspaper over the weekend that a debt write-off could possibly be an option for Greece if its budget returns to surplus one day. Read: Greek hopes, China data undercut dollar

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